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STATE OF ARIZONA
STATE SENATE RANDALL GNANT CHAIRMAN 1999 GUS ARZBERGER RUSSELL W. "RUSTY" BOWERS JACK A. BROWN TOM SMITH RUTH SOLOMON JOHN WETTAW
Joint Committee on Capital Review
1716 WEST ADAMS PHOENIX, ARIZONA 85007
PHONE (602) 542-5491 FAX (602) 542-1616
HOUSE OF REPRESENTATIVES BOB BURNS CHAIRMAN 2000 DEAN COOLEY LORI S. DANIELS KAREN S. JOHNSON BOB MCLENDON ANDY NICHOLS CHRISTINE WEASON
MEETING NOTICE
DATE: TIME: PLACE:
February 21, 2000 8:00 a.m. HOUSE HEARING ROOM 4 TENTATIVE AGENDA
1.
Call to Order Approval of Minutes of December 14, 1999. EXECUTIVE SESSION � Acquisition of Real Property.* DIRECTOR'S REPORT (if necessary). ARIZONA DEPARTMENT OF ADMINISTRATION � A. Review Scope, Purpose, and Estimated Cost of Preliminary Sitework for the New Arizona State Hospital Facility. B. ADOA Proposal for Capitol Mall Office Buildings. DEPARTMENT OF EMERGENCY AND MILITARY AFFAIRS � Report on Clifton Flood Control Project.
2.
* As permitted under.A.R.S. � 38-431.03(A)(7).
The Chairman reserves the right to set the order of the agenda. 02/15/00
People with disabilities may request accommodations such as interpreters, alternative formats, or assistance with physical accessibility. Requests for accommodations must be made with 72 hours prior notice. If you require accommodations, please contact the JLBC Office at (602) 542-5491.
STATE OF ARIZONA
STATE SENATE RANDALL GNANT CHAIRMAN 1999 GUS ARZBERGER RUSSELL W. "RUSTY" BOWERS JACK A. BROWN TOM SMITH RUTH SOLOMON JOHN WETTAW
Joint Committee on Capital Review
1716 WEST ADAMS PHOENIX, ARIZONA 85007
PHONE (602) 542-5491 FAX (602) 542-1616
HOUSE OF REPRESENTATIVES BOB BURNS CHAIRMAN 2000 DEAN COOLEY LORI S. DANIELS KAREN S. JOHNSON BOB MCLENDON ANDY NICHOLS CHRISTINE WEASON
DATE: TO: THRU: FROM: SUBJECT: Request
February 16, 2000 Representative Robert "Bob" Burns, Chairman Members, Joint Committee on Capital Review Richard Stavneak, Director Jennifer Vermeer, Assistant Director REVIEW SCOPE, PURPOSE, AND ESTIMATED COST OF PRELIMINARY SITEWORK FOR THE NEW ARIZONA STATE HOSPITAL FACILITY
The Arizona Department of Administration (ADOA) requests review of the scope, purpose, and estimated cost of preliminary sitework and demolition for the new 176 civil hospital at the Arizona State Hospital (ASH). Recommendation The JLBC Staff recommends a favorable review of the request. The JLBC Staff, further recommends that any transfers among the submitted cost categories in excess of $100,000 be reported to the JLBC Staff prior to expenditure. Analysis Laws 1999, Chapter 1 appropriated $80,000,000 across 4 fiscal years from FY 2000 through FY 2003 from the ASH Capital Construction Fund for construction of new facilities at ASH. The project is intended to include a new 176-bed civil hospital, renovation of existing buildings for the ASH forensic population and a combination of renovation and new construction for the Sexually Violent Persons (SVP) program. Chapter 1 established the ASH Capital Construction Commission to review and make recommendations to the Joint Committee on Capital Review on construction and renovation plans for the project. A total of $20,000,000 is appropriated in FY 2000. (Continued)
Representative Robert "Bob" Burns, Chairman Members, Joint Committee on Capital Review
-2-
Febr uary 16, 2000
ADOA requests approval of the expenditure of $3,522,000 from the $20,000,000 FY 2000 appropriation for preliminary sitework and demolition. The preliminary work would include asbestos abatement and demolition of buildings and utility tunnels that are in the "footprint" of the new building. In addition, the request includes monies to procure a consultant to begin work on request for proposals to begin planning for all 3 phases of the project (civil, forensic and SVP). The plan would be presented to the commission when it is appointed. The project has not been bid. The following lists the estimated costs of the various project components: Asbestos abatement Demolition Tunnels Engineering plans for the demolition RFP consultant for design and planning Sitework Contingency (20%) Total $800,000 715,000 300,000 300,000 520,000 300,000 587,000 $3,522,000
The contingency allocation is typically set at 10%. The request above includes a contingency allocation of 20%. The higher allocation is due to uncertainty regarding the cost of demolishing the tunnels, which are in very poor condition. In addition, since the project has not been bid, there is some uncertainty regarding the other components of the request as well. As a result, the JLBC Staff recommends a favorable review, but recommends that ADOA report the costs to the JLBC Staff when bids have been received. Chapter 1 specifies that the Commission shall review and make recommendations on capital construction and renovation plans at ASH. The Commission has not yet been appointed, but Chapter 1 requires that the Commission be appointed by May 1, 2000 and meet by May 31, 2000. The scope of the request is for preliminary work limited to activities that need to be completed in preparation for new construction or renovation. Since the request does not include any new construction or any monies to begin renovation of the buildings, it does not appear that the Commission would need to be in place for this phase of the ASH project to proceed. ADOA would like to begin the work now because even under the current schedule, the demolition will not be complete until December 2000. If the preliminary work is delayed until May, the demolition would not be complete until March or April of 2001. RS:JV:jb
STATE OF ARIZONA
STATE SENATE RANDALL GNANT CHAIRMAN 1999 GUS ARZBERGER RUSSELL W. "RUSTY" BOWERS JACK A. BROWN TOM SMITH RUTH SOLOMON JOHN WETTAW
Joint Committee on Capital Review
1716 WEST ADAMS PHOENIX, ARIZONA 85007
PHONE (602) 542-5491 FAX (602) 542-1616
HOUSE OF REPRESENTATIVES BOB BURNS CHAIRMAN 2000 DEAN COOLEY LORI S. DANIELS KAREN S. JOHNSON BOB MCLENDON ANDY NICHOLS CHRISTINE WEASON
DATE: TO: THRU: FROM: SUBJECT: Request
February 16, 2000 Representative Robert "Bob" Burns, Chairman Members, Joint Committee on Capital Review Richard Stavneak, Director Lynne Smith, Senior Fiscal Analyst Lorenzo Martinez, Senior Fiscal Analyst ADOA PROPOSAL FOR CAPITOL MALL OFFICE BUILDINGS
The Arizona Department of Administration (ADOA) requests that the Committee review its proposal to negotiate a contract for Privatized Lease To Own (PLTO) development on the Capitol Mall. This contract is essentially a lease-purchase agreement to build two new office buildings on the Capitol Mall totaling 485,000 square feet. Recommendation Given that the proposal would construct two major office buildings on the Capitol Mall and essentially commit the state to making lease payments for up to 25 years, the JLBC Staff recommends that the Committee take no action and that ADOA seek authorization from the full Legislature for these lease-purchase buildings. At this time, however, we believe that ADOA has submitted insufficient information for the Legislature to consider its proposal. The JLBC Staff further recommends that, if the Legislature authorizes the proposal, ADOA submit any lease-purchase agreement to JCCR for review and approval before the transaction takes effect. Analysis At the August 5, 1999 JCCR meeting, ADOA submitted a report on its lease-purchase proposal. The proposal envisions selecting a private development company to build two state office buildings on state land within the Capitol Mall. The developer would plan and design in accordance with the State's requirements and then construct and operate the buildings. The State would lease the two office buildings from the developer for a specified period (20-25 years) in accordance with the terms the State presently uses for private office leases. The State would offset the annual lease payment to the development company by utilizing the aggregate appropriated funds in state agency budgets for private sector lease space. Exclusive of relocation costs, this would be the planned revenue stream for this project. ADOA states that it cannot release specific information because it has not completed the Request for Proposals (RFP) process. However, ADOA estimates that the (Continued)
Representative Robert "Bob" Burns, Chairman
Members, Joint Committee on Capital Review
- 2-
Februar y 16, 2000
first year's annualized lease payment to the developer, based on an average of bids received to date, would be approximately $7,135,300 in FY 2003, while the projected cost for private sector lease space that would no longer be needed would be $7,396,500. At the conclusion of the specified term between the State and the developer, ownership of the two office buildings would be transferred to the State. The Committee requested that if the department issued an RFP, it also solicit bids for a pay-as-you-go option. ADOA issued an RFP, including lease-purchase and pay-as-you-go options. The department received 7 proposals and is currently negotiating these proposals. The attached ADOA letter (Attachment 1) summarizes its progress. Because the RFP process has not been completed, ADOA has not yet provided sufficient information for the JLBC Staff to analyze the request. The attached July 29, 1999 JLBC Staff letter to the Committee (Attachment 2) summarizes the staff concerns and questions that need to be answered once the information is available. Specifically, we have requested the following information:
� � � � � � �
a list of each agency that will occupy the new space, including square footage and lease payment by fund source for each year of the lease period; the lease payment obligation for each year of the lease period; a list of each agency that will occupy any state-owned space vacated by the relocated agencies, including square footage and lease payment by fund source for each year of the lease period; explanation for any increases in space for an agency; any relocation costs by fund source; any operation and maintenance costs by fund source for each year of the lease period; expected increase in building renewal expenses.
Since the proposal would finance two major office buildings and commit the state to up to 25 years of lease payments, the JLBC Staff recommends that the Committee take no action and that the department seek authorization from the full Legislature. The Senate Appropriations Committee has approved SB 1401, which authorizes the department's plan. If this bill (or similar legislation) is enacted, the department should then proceed with the required JCCR review and approval process. RS:LS:LM:jb
STATE OF ARIZONA
STATE SENATE RANDALL GNANT CHAIRMAN 1999 GUS ARZBERGER RUSSELL W. "RUSTY" BOWERS JACK A. BROWN TOM SMITH RUTH SOLOMON JOHN WETTAW
Joint Committee on Capital Review
1716 WEST ADAMS PHOENIX, ARIZONA 85007
PHONE (602) 542-5491 FAX (602) 542-1616
HOUSE OF REPRESENTATIVES BOB BURNS CHAIRMAN 2000 DEAN COOLEY LORI S. DANIELS KAREN S. JOHNSON BOB MCLENDON ANDY NICHOLS CHRISTINE WEASON
DATE: TO: THRU: FROM: SUBJECT: Request
February 16, 2000 Representative Robert "Bob" Burns, Chairman Members, Joint Committee on Capital Review Richard Stavneak, Director Brian Schmitz, Fiscal Analyst DEPARTMENT OF EMERGENCY AND MILITARY AFFAIRS � CLIFTON FLOOD CONTROL PROJECT
The Department of Emergency and Military Affairs (DEMA) has been requested to appear before this committee to provide an update on the status and the estimated timeline for final completion of the Clifton Flood Control Project. Recommendation No committee action is required. Analysis Laws 1999, Chapter 181 appropriated $650,000 in FY 2000 and another $650,000 in FY 2002 to the Department of Emergency and Military Affairs (DEMA) for completion of the Clifton Flood Control project. This was the last in a series of legislative appropriations made for construction of a flood control system to protect the town of Clifton from flooding. Clifton, located on the San Francisco River in Greenlee County, has experienced repeated flooding over the past 100 years. In response to a major flood in 1983, the Legislature and the federal government decided to build a flood control system to guard the town against future floods. Since 1992, the Legislature has appropriated $8.83 million for the Clifton Flood Control Project, and the federal government has appropriated $15.5 million. Page 3 of the DEMA submission provides a timeline of state appropriations and phases of the project. Only a small part of the project remains to be finished. A flood warning system was finished in 1993, a levee (flood gate) designed to protect the town was finished in 1996, and families living in the flood zone were relocated in 1999. In 2000 and 2001, a revenue generating recreational park will be built to subsidize the maintenance cost of the levee. This is the last component of the project. Because the state appropriations for this component were made for FY 2000 and FY 2002, construction of the recreational park has been divided into 2 phases. DEMA estimates that Phase 1 will be completed in February 2001, and Phase 2 is estimated to be finished by December 2001. RS:BS:jb Attachments
STATE OF ARIZONA
STATE SENATE RANDALL GNANT CHAIRMAN 1999 GUS ARZBERGER RUSSELL W. "RUSTY" BOWERS JACK A. BROWN TOM SMITH RUTH SOLOMON JOHN WETTAW
Joint Committee on Capital Review
1716 WEST ADAMS PHOENIX, ARIZONA 85007
PHONE (602) 542-5491 FAX (602) 542-1616
HOUSE OF REPRESENTATIVES BOB BURNS CHAIRMAN 2000 DEAN COOLEY LORI S. DANIELS KAREN S. JOHNSON BOB MCLENDON ANDY NICHOLS CHRISTINE WEASON
MINUTES OF THE MEETING JOINT COMMITTEE ON CAPITAL REVIEW December 14, 1999 The Chairman called the meeting to order at 2:40 p.m. Tuesday, December 14, 1999, in Senate Appropriations Room 109 and attendance was noted. Members: Senator Gnant, Chairman Senator Arzberger Senator Bowers Senator Brown Senator Smith Senator Solomon Senator Wettaw Richard Stavneak Jennifer Vermeer Lorenzo Martinez Lynne Smith Greg Fahey, UofA Joel Valdez, UofA Charlene Ledet, UofA Dick Roberts, UofA Jim Hillyard, ADJC Dr. Philip Geiger, SFB Representative Burns, Vice-Chairman Representative Cooley Representative Weason Representative McLendon Representative Nichols Representative Daniels Representative Johnson Adele Garcia Chris Earnest Indya Kincannon Paul Shannon David Lujan, Atty. General's Office Bruce Ringwald, ADOA Tony Seese-Bieda, ABOR Dave Harris , ABOR Gene Messer, DHS Vicki Davis, DHS
Absent: Staff:
Others:
SENATOR GNANT ASKED FOR CORRECTIONS OR ADDITIONS TO THE MINUTES OF OCTOBER 14, 1999. HEARING NONE, THE MINUTES WERE APPROVED AS PRESENTED. ARIZONA DEPARTMENT OF ADMINISTRATION - Review Scope, Purpose and Expenditure Plan for the Construction of the Sexually Violent Persons Facility. REPRESENTATIVE BURNS MOVED THE COMMITTEE GIVE A FAVORABLE REVIEW TO THE SCOPE, PURPOSE AND EXPENDITURE PLAN FOR THE CONSTRUCTION OF THE 60-BED SEXUALLY VIOLENT PERSONS FACILITY TO BE CONSTRUCTED AT THE ARIZONA STATE HOSPITAL AND THAT ANY TRANSFERS AMONG THE SUBMITTED COST CATEGORIES IN EXCESS OF $100,000 BE REPORTED TO THE JLBC STAFF PRIOR TO EXPENDITURE. The motion carried.
JCCR Meeting
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December 14, 1999
ARIZONA DEPARTMENT OF ADMINISTRATION - Review the Scope of the Sexually Violent Persons Facility. Representative Weason inquired why the sexually violent persons program currently does not have adequate space for support services, such as attorney/client visitation. JLBC Staff analyst, Jennifer Vermeer indicated that the additional support space is required as a result of the growing population. Representative Weason questioned whether the sexually violent person's facility revealed any type of "log-in" to verify that these facilities were continuously being used. Jennifer Vermeer indicated that that type of information was not submitted. This type of space is part of their permanent base plan and part of the $75 million proposed allocation for the Arizona State Hospital (ASH) Campus. What the Committee is reviewing is a temporary arrangement until a permanent plan for ASH is developed. REPRESENTATIVE BURNS MOVED THE COMMITTEE GIVE A FAVORABLE REVIEW TO THE REVISED
SCOPE OF THE SEXUALLY VIOLENT PERSONS FACILITY AUTHORIZED BY LAWS 1998, CHAPTER 1 TO INCLUDE MODULAR CONSTRUCTION FOR SUPPORT SPACE. The motion carried.
ARIZONA STATE PARKS - Kartchner Caverns State Park Quarterly Status Report. Senator Gnant asked what the capacity of tour visitors per day was. JLBC Staff analyst, Chris Earnest responded that he did not know and that no one from State Parks was present to answer that question. Senator Gnant asked if Mr. Earnest if he knew roughly, the tour capacity. Mr. Earnest indicated that Kartchner Caverns State Park is currently running tours every 20 minutes with a capacity of 14 persons per tour. Mr. Earnest indicated that Kartchner Caverns State Park is sold out until March 2000, at least. Representative Weason questioned what the source of the Enhancement Fund was. Mr. Earnest indicated that Enhancement Fund monies come from park entrance fees. ARIZONA DEPARTMENT OF JUVENILE CORRECTIONS - Review Revised Scope of the Southwest Regional Juvenile Corrections Complex. Senator Smith asked if the state had created additional expense by having the two facilities situated so far apart from one another that the administrative functions could not cover both facilities. JLBC Staff analyst, Indya Kincannon pointed out that she had visited the site and it was her impression that Eagle Point and Sunrise Mountain are about a � mile from each other. Ms. Kincannon remarked that it was her understanding that the agency does not intend to hire any more staff, the additional space would alleviate the inadequacy of space in existing facilities. Representative Weason expressed concerns about the Black Canyon plan to create an all-female juvenile unit. Representative Weason asked what would happen to the male juveniles. Ms. Kincannon indicated that the male juveniles would be moved to the Buckeye facility. Representative Weason asked about the mental health facility for girls and wanted to know why the state was only providing mental health services for females and not males. Ms. Kincannon remarked that the males already have a mental health facility. REPRESENTATIVE BURNS MOVED THE COMMITTEE GIVE A FAVORABLE REVIEW TO THE REVISED
SCOPE OF THE SOUTHWEST REGIONAL JUVENILE CORRECTIONS COMPLEX AND THAT THE AGENCY SUBMIT A LONG RANGE PLAN FOR ALL BEDS, INCLUDING BUDGET IMPLICATIONS, TO THE JLBC BY JANUARY 21, 2000. The motion carried.
JCCR Meeting
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December 14, 1999
ARIZONA BOARD OF REGENTS - Review Revised Multi-Year Bonding Plan for the University of Arizona. REPRESENTATIVE BURNS MOVED THE COMMITTEE GIVE A FAVORABLE REVIEW TO THE REVISIONS TO THE ARIZONA BOARD OF REGENTS MULTI-YEAR BONDING PLAN FOR THE UNIVERSITY OF ARIZONA. The motion carried. ARIZONA BOARD OF REGENTS - Approval of University of Arizona Bond Projects. REPRESENTATIVE BURNS MOVED THE COMMITTEE APPROVE THE ISSUANCE OF $11,300,000 IN ACADEMIC REVENUE BONDS FOR IMPROVEMENTS TO THE MAIN LIBRARY AND AN ADDITIONAL ISSUANCE OF $10,000,000 IN ACADEMIC REVENUE BONDS FOR PHASE V OF INFRASTRUCTURE IMPROVEMENTS AT THE UNIVERSITY OF ARIZONA. THE COMMITTEE FURTHER RECOMMENDED THAT ANY TRANSFERS AMONG THE SUBMITTED COST CATEGORIES IN EXCESS OF $100,000 BE REPORTED TO THE JLBC STAFF PRIOR TO EXPENDITURE. The motion carried. The Chairman adjourned the meeting at 2:50 p.m.
Adele Garcia, Secretary
Lorenzo Martinez, Senior Fiscal Analyst
Senator Randall Gnant, Chairman
NOTE: A full tape recording of this meeting is on file in the JLBC Staff office at 1716 W. Adams.

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STATE OF ARIZONA
STATE SENATE RANDALL GNANT CHAIRMAN 1999 GUS ARZBERGER RUSSELL W. "RUSTY" BOWERS JACK A. BROWN TOM SMITH RUTH SOLOMON JOHN WETTAW
Joint Committee on Capital Review
1716 WEST ADAMS PHOENIX, ARIZONA 85007
PHONE (602) 542-5491 FAX (602) 542-1616
HOUSE OF REPRESENTATIVES BOB BURNS CHAIRMAN 2000 DEAN COOLEY LORI S. DANIELS KAREN S. JOHNSON BOB MCLENDON ANDY NICHOLS CHRISTINE WEASON
MEETING NOTICE
DATE: TIME: PLACE:
February 21, 2000 8:00 a.m. HOUSE HEARING ROOM 4 TENTATIVE AGENDA
1.
Call to Order Approval of Minutes of December 14, 1999. EXECUTIVE SESSION � Acquisition of Real Property.* DIRECTOR'S REPORT (if necessary). ARIZONA DEPARTMENT OF ADMINISTRATION � A. Review Scope, Purpose, and Estimated Cost of Preliminary Sitework for the New Arizona State Hospital Facility. B. ADOA Proposal for Capitol Mall Office Buildings. DEPARTMENT OF EMERGENCY AND MILITARY AFFAIRS � Report on Clifton Flood Control Project.
2.
* As permitted under.A.R.S. � 38-431.03(A)(7).
The Chairman reserves the right to set the order of the agenda. 02/15/00
People with disabilities may request accommodations such as interpreters, alternative formats, or assistance with physical accessibility. Requests for accommodations must be made with 72 hours prior notice. If you require accommodations, please contact the JLBC Office at (602) 542-5491.
STATE OF ARIZONA
STATE SENATE RANDALL GNANT CHAIRMAN 1999 GUS ARZBERGER RUSSELL W. "RUSTY" BOWERS JACK A. BROWN TOM SMITH RUTH SOLOMON JOHN WETTAW
Joint Committee on Capital Review
1716 WEST ADAMS PHOENIX, ARIZONA 85007
PHONE (602) 542-5491 FAX (602) 542-1616
HOUSE OF REPRESENTATIVES BOB BURNS CHAIRMAN 2000 DEAN COOLEY LORI S. DANIELS KAREN S. JOHNSON BOB MCLENDON ANDY NICHOLS CHRISTINE WEASON
DATE: TO: THRU: FROM: SUBJECT: Request
February 16, 2000 Representative Robert "Bob" Burns, Chairman Members, Joint Committee on Capital Review Richard Stavneak, Director Jennifer Vermeer, Assistant Director REVIEW SCOPE, PURPOSE, AND ESTIMATED COST OF PRELIMINARY SITEWORK FOR THE NEW ARIZONA STATE HOSPITAL FACILITY
The Arizona Department of Administration (ADOA) requests review of the scope, purpose, and estimated cost of preliminary sitework and demolition for the new 176 civil hospital at the Arizona State Hospital (ASH). Recommendation The JLBC Staff recommends a favorable review of the request. The JLBC Staff, further recommends that any transfers among the submitted cost categories in excess of $100,000 be reported to the JLBC Staff prior to expenditure. Analysis Laws 1999, Chapter 1 appropriated $80,000,000 across 4 fiscal years from FY 2000 through FY 2003 from the ASH Capital Construction Fund for construction of new facilities at ASH. The project is intended to include a new 176-bed civil hospital, renovation of existing buildings for the ASH forensic population and a combination of renovation and new construction for the Sexually Violent Persons (SVP) program. Chapter 1 established the ASH Capital Construction Commission to review and make recommendations to the Joint Committee on Capital Review on construction and renovation plans for the project. A total of $20,000,000 is appropriated in FY 2000. (Continued)
Representative Robert "Bob" Burns, Chairman Members, Joint Committee on Capital Review
-2-
Febr uary 16, 2000
ADOA requests approval of the expenditure of $3,522,000 from the $20,000,000 FY 2000 appropriation for preliminary sitework and demolition. The preliminary work would include asbestos abatement and demolition of buildings and utility tunnels that are in the "footprint" of the new building. In addition, the request includes monies to procure a consultant to begin work on request for proposals to begin planning for all 3 phases of the project (civil, forensic and SVP). The plan would be presented to the commission when it is appointed. The project has not been bid. The following lists the estimated costs of the various project components: Asbestos abatement Demolition Tunnels Engineering plans for the demolition RFP consultant for design and planning Sitework Contingency (20%) Total $800,000 715,000 300,000 300,000 520,000 300,000 587,000 $3,522,000
The contingency allocation is typically set at 10%. The request above includes a contingency allocation of 20%. The higher allocation is due to uncertainty regarding the cost of demolishing the tunnels, which are in very poor condition. In addition, since the project has not been bid, there is some uncertainty regarding the other components of the request as well. As a result, the JLBC Staff recommends a favorable review, but recommends that ADOA report the costs to the JLBC Staff when bids have been received. Chapter 1 specifies that the Commission shall review and make recommendations on capital construction and renovation plans at ASH. The Commission has not yet been appointed, but Chapter 1 requires that the Commission be appointed by May 1, 2000 and meet by May 31, 2000. The scope of the request is for preliminary work limited to activities that need to be completed in preparation for new construction or renovation. Since the request does not include any new construction or any monies to begin renovation of the buildings, it does not appear that the Commission would need to be in place for this phase of the ASH project to proceed. ADOA would like to begin the work now because even under the current schedule, the demolition will not be complete until December 2000. If the preliminary work is delayed until May, the demolition would not be complete until March or April of 2001. RS:JV:jb
STATE OF ARIZONA
STATE SENATE RANDALL GNANT CHAIRMAN 1999 GUS ARZBERGER RUSSELL W. "RUSTY" BOWERS JACK A. BROWN TOM SMITH RUTH SOLOMON JOHN WETTAW
Joint Committee on Capital Review
1716 WEST ADAMS PHOENIX, ARIZONA 85007
PHONE (602) 542-5491 FAX (602) 542-1616
HOUSE OF REPRESENTATIVES BOB BURNS CHAIRMAN 2000 DEAN COOLEY LORI S. DANIELS KAREN S. JOHNSON BOB MCLENDON ANDY NICHOLS CHRISTINE WEASON
DATE: TO: THRU: FROM: SUBJECT: Request
February 16, 2000 Representative Robert "Bob" Burns, Chairman Members, Joint Committee on Capital Review Richard Stavneak, Director Lynne Smith, Senior Fiscal Analyst Lorenzo Martinez, Senior Fiscal Analyst ADOA PROPOSAL FOR CAPITOL MALL OFFICE BUILDINGS
The Arizona Department of Administration (ADOA) requests that the Committee review its proposal to negotiate a contract for Privatized Lease To Own (PLTO) development on the Capitol Mall. This contract is essentially a lease-purchase agreement to build two new office buildings on the Capitol Mall totaling 485,000 square feet. Recommendation Given that the proposal would construct two major office buildings on the Capitol Mall and essentially commit the state to making lease payments for up to 25 years, the JLBC Staff recommends that the Committee take no action and that ADOA seek authorization from the full Legislature for these lease-purchase buildings. At this time, however, we believe that ADOA has submitted insufficient information for the Legislature to consider its proposal. The JLBC Staff further recommends that, if the Legislature authorizes the proposal, ADOA submit any lease-purchase agreement to JCCR for review and approval before the transaction takes effect. Analysis At the August 5, 1999 JCCR meeting, ADOA submitted a report on its lease-purchase proposal. The proposal envisions selecting a private development company to build two state office buildings on state land within the Capitol Mall. The developer would plan and design in accordance with the State's requirements and then construct and operate the buildings. The State would lease the two office buildings from the developer for a specified period (20-25 years) in accordance with the terms the State presently uses for private office leases. The State would offset the annual lease payment to the development company by utilizing the aggregate appropriated funds in state agency budgets for private sector lease space. Exclusive of relocation costs, this would be the planned revenue stream for this project. ADOA states that it cannot release specific information because it has not completed the Request for Proposals (RFP) process. However, ADOA estimates that the (Continued)
Representative Robert "Bob" Burns, Chairman
Members, Joint Committee on Capital Review
- 2-
Februar y 16, 2000
first year's annualized lease payment to the developer, based on an average of bids received to date, would be approximately $7,135,300 in FY 2003, while the projected cost for private sector lease space that would no longer be needed would be $7,396,500. At the conclusion of the specified term between the State and the developer, ownership of the two office buildings would be transferred to the State. The Committee requested that if the department issued an RFP, it also solicit bids for a pay-as-you-go option. ADOA issued an RFP, including lease-purchase and pay-as-you-go options. The department received 7 proposals and is currently negotiating these proposals. The attached ADOA letter (Attachment 1) summarizes its progress. Because the RFP process has not been completed, ADOA has not yet provided sufficient information for the JLBC Staff to analyze the request. The attached July 29, 1999 JLBC Staff letter to the Committee (Attachment 2) summarizes the staff concerns and questions that need to be answered once the information is available. Specifically, we have requested the following information:
� � � � � � �
a list of each agency that will occupy the new space, including square footage and lease payment by fund source for each year of the lease period; the lease payment obligation for each year of the lease period; a list of each agency that will occupy any state-owned space vacated by the relocated agencies, including square footage and lease payment by fund source for each year of the lease period; explanation for any increases in space for an agency; any relocation costs by fund source; any operation and maintenance costs by fund source for each year of the lease period; expected increase in building renewal expenses.
Since the proposal would finance two major office buildings and commit the state to up to 25 years of lease payments, the JLBC Staff recommends that the Committee take no action and that the department seek authorization from the full Legislature. The Senate Appropriations Committee has approved SB 1401, which authorizes the department's plan. If this bill (or similar legislation) is enacted, the department should then proceed with the required JCCR review and approval process. RS:LS:LM:jb
STATE OF ARIZONA
STATE SENATE RANDALL GNANT CHAIRMAN 1999 GUS ARZBERGER RUSSELL W. "RUSTY" BOWERS JACK A. BROWN TOM SMITH RUTH SOLOMON JOHN WETTAW
Joint Committee on Capital Review
1716 WEST ADAMS PHOENIX, ARIZONA 85007
PHONE (602) 542-5491 FAX (602) 542-1616
HOUSE OF REPRESENTATIVES BOB BURNS CHAIRMAN 2000 DEAN COOLEY LORI S. DANIELS KAREN S. JOHNSON BOB MCLENDON ANDY NICHOLS CHRISTINE WEASON
DATE: TO: THRU: FROM: SUBJECT: Request
February 16, 2000 Representative Robert "Bob" Burns, Chairman Members, Joint Committee on Capital Review Richard Stavneak, Director Brian Schmitz, Fiscal Analyst DEPARTMENT OF EMERGENCY AND MILITARY AFFAIRS � CLIFTON FLOOD CONTROL PROJECT
The Department of Emergency and Military Affairs (DEMA) has been requested to appear before this committee to provide an update on the status and the estimated timeline for final completion of the Clifton Flood Control Project. Recommendation No committee action is required. Analysis Laws 1999, Chapter 181 appropriated $650,000 in FY 2000 and another $650,000 in FY 2002 to the Department of Emergency and Military Affairs (DEMA) for completion of the Clifton Flood Control project. This was the last in a series of legislative appropriations made for construction of a flood control system to protect the town of Clifton from flooding. Clifton, located on the San Francisco River in Greenlee County, has experienced repeated flooding over the past 100 years. In response to a major flood in 1983, the Legislature and the federal government decided to build a flood control system to guard the town against future floods. Since 1992, the Legislature has appropriated $8.83 million for the Clifton Flood Control Project, and the federal government has appropriated $15.5 million. Page 3 of the DEMA submission provides a timeline of state appropriations and phases of the project. Only a small part of the project remains to be finished. A flood warning system was finished in 1993, a levee (flood gate) designed to protect the town was finished in 1996, and families living in the flood zone were relocated in 1999. In 2000 and 2001, a revenue generating recreational park will be built to subsidize the maintenance cost of the levee. This is the last component of the project. Because the state appropriations for this component were made for FY 2000 and FY 2002, construction of the recreational park has been divided into 2 phases. DEMA estimates that Phase 1 will be completed in February 2001, and Phase 2 is estimated to be finished by December 2001. RS:BS:jb Attachments
STATE OF ARIZONA
STATE SENATE RANDALL GNANT CHAIRMAN 1999 GUS ARZBERGER RUSSELL W. "RUSTY" BOWERS JACK A. BROWN TOM SMITH RUTH SOLOMON JOHN WETTAW
Joint Committee on Capital Review
1716 WEST ADAMS PHOENIX, ARIZONA 85007
PHONE (602) 542-5491 FAX (602) 542-1616
HOUSE OF REPRESENTATIVES BOB BURNS CHAIRMAN 2000 DEAN COOLEY LORI S. DANIELS KAREN S. JOHNSON BOB MCLENDON ANDY NICHOLS CHRISTINE WEASON
MINUTES OF THE MEETING JOINT COMMITTEE ON CAPITAL REVIEW December 14, 1999 The Chairman called the meeting to order at 2:40 p.m. Tuesday, December 14, 1999, in Senate Appropriations Room 109 and attendance was noted. Members: Senator Gnant, Chairman Senator Arzberger Senator Bowers Senator Brown Senator Smith Senator Solomon Senator Wettaw Richard Stavneak Jennifer Vermeer Lorenzo Martinez Lynne Smith Greg Fahey, UofA Joel Valdez, UofA Charlene Ledet, UofA Dick Roberts, UofA Jim Hillyard, ADJC Dr. Philip Geiger, SFB Representative Burns, Vice-Chairman Representative Cooley Representative Weason Representative McLendon Representative Nichols Representative Daniels Representative Johnson Adele Garcia Chris Earnest Indya Kincannon Paul Shannon David Lujan, Atty. General's Office Bruce Ringwald, ADOA Tony Seese-Bieda, ABOR Dave Harris , ABOR Gene Messer, DHS Vicki Davis, DHS
Absent: Staff:
Others:
SENATOR GNANT ASKED FOR CORRECTIONS OR ADDITIONS TO THE MINUTES OF OCTOBER 14, 1999. HEARING NONE, THE MINUTES WERE APPROVED AS PRESENTED. ARIZONA DEPARTMENT OF ADMINISTRATION - Review Scope, Purpose and Expenditure Plan for the Construction of the Sexually Violent Persons Facility. REPRESENTATIVE BURNS MOVED THE COMMITTEE GIVE A FAVORABLE REVIEW TO THE SCOPE, PURPOSE AND EXPENDITURE PLAN FOR THE CONSTRUCTION OF THE 60-BED SEXUALLY VIOLENT PERSONS FACILITY TO BE CONSTRUCTED AT THE ARIZONA STATE HOSPITAL AND THAT ANY TRANSFERS AMONG THE SUBMITTED COST CATEGORIES IN EXCESS OF $100,000 BE REPORTED TO THE JLBC STAFF PRIOR TO EXPENDITURE. The motion carried.
JCCR Meeting
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December 14, 1999
ARIZONA DEPARTMENT OF ADMINISTRATION - Review the Scope of the Sexually Violent Persons Facility. Representative Weason inquired why the sexually violent persons program currently does not have adequate space for support services, such as attorney/client visitation. JLBC Staff analyst, Jennifer Vermeer indicated that the additional support space is required as a result of the growing population. Representative Weason questioned whether the sexually violent person's facility revealed any type of "log-in" to verify that these facilities were continuously being used. Jennifer Vermeer indicated that that type of information was not submitted. This type of space is part of their permanent base plan and part of the $75 million proposed allocation for the Arizona State Hospital (ASH) Campus. What the Committee is reviewing is a temporary arrangement until a permanent plan for ASH is developed. REPRESENTATIVE BURNS MOVED THE COMMITTEE GIVE A FAVORABLE REVIEW TO THE REVISED
SCOPE OF THE SEXUALLY VIOLENT PERSONS FACILITY AUTHORIZED BY LAWS 1998, CHAPTER 1 TO INCLUDE MODULAR CONSTRUCTION FOR SUPPORT SPACE. The motion carried.
ARIZONA STATE PARKS - Kartchner Caverns State Park Quarterly Status Report. Senator Gnant asked what the capacity of tour visitors per day was. JLBC Staff analyst, Chris Earnest responded that he did not know and that no one from State Parks was present to answer that question. Senator Gnant asked if Mr. Earnest if he knew roughly, the tour capacity. Mr. Earnest indicated that Kartchner Caverns State Park is currently running tours every 20 minutes with a capacity of 14 persons per tour. Mr. Earnest indicated that Kartchner Caverns State Park is sold out until March 2000, at least. Representative Weason questioned what the source of the Enhancement Fund was. Mr. Earnest indicated that Enhancement Fund monies come from park entrance fees. ARIZONA DEPARTMENT OF JUVENILE CORRECTIONS - Review Revised Scope of the Southwest Regional Juvenile Corrections Complex. Senator Smith asked if the state had created additional expense by having the two facilities situated so far apart from one another that the administrative functions could not cover both facilities. JLBC Staff analyst, Indya Kincannon pointed out that she had visited the site and it was her impression that Eagle Point and Sunrise Mountain are about a � mile from each other. Ms. Kincannon remarked that it was her understanding that the agency does not intend to hire any more staff, the additional space would alleviate the inadequacy of space in existing facilities. Representative Weason expressed concerns about the Black Canyon plan to create an all-female juvenile unit. Representative Weason asked what would happen to the male juveniles. Ms. Kincannon indicated that the male juveniles would be moved to the Buckeye facility. Representative Weason asked about the mental health facility for girls and wanted to know why the state was only providing mental health services for females and not males. Ms. Kincannon remarked that the males already have a mental health facility. REPRESENTATIVE BURNS MOVED THE COMMITTEE GIVE A FAVORABLE REVIEW TO THE REVISED
SCOPE OF THE SOUTHWEST REGIONAL JUVENILE CORRECTIONS COMPLEX AND THAT THE AGENCY SUBMIT A LONG RANGE PLAN FOR ALL BEDS, INCLUDING BUDGET IMPLICATIONS, TO THE JLBC BY JANUARY 21, 2000. The motion carried.
JCCR Meeting
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December 14, 1999
ARIZONA BOARD OF REGENTS - Review Revised Multi-Year Bonding Plan for the University of Arizona. REPRESENTATIVE BURNS MOVED THE COMMITTEE GIVE A FAVORABLE REVIEW TO THE REVISIONS TO THE ARIZONA BOARD OF REGENTS MULTI-YEAR BONDING PLAN FOR THE UNIVERSITY OF ARIZONA. The motion carried. ARIZONA BOARD OF REGENTS - Approval of University of Arizona Bond Projects. REPRESENTATIVE BURNS MOVED THE COMMITTEE APPROVE THE ISSUANCE OF $11,300,000 IN ACADEMIC REVENUE BONDS FOR IMPROVEMENTS TO THE MAIN LIBRARY AND AN ADDITIONAL ISSUANCE OF $10,000,000 IN ACADEMIC REVENUE BONDS FOR PHASE V OF INFRASTRUCTURE IMPROVEMENTS AT THE UNIVERSITY OF ARIZONA. THE COMMITTEE FURTHER RECOMMENDED THAT ANY TRANSFERS AMONG THE SUBMITTED COST CATEGORIES IN EXCESS OF $100,000 BE REPORTED TO THE JLBC STAFF PRIOR TO EXPENDITURE. The motion carried. The Chairman adjourned the meeting at 2:50 p.m.
Adele Garcia, Secretary
Lorenzo Martinez, Senior Fiscal Analyst
Senator Randall Gnant, Chairman
NOTE: A full tape recording of this meeting is on file in the JLBC Staff office at 1716 W. Adams.